Owens Corning (NYSE:OC) Issues Quarterly Earnings Results

Owens Corning (NYSE:OC) posted its quarterly earnings data on Wednesday. The construction company reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.21, Zacks reports. The firm had revenue of $2.27 billion during the quarter, compared to analysts’ expectations of $2.18 billion. Owens Corning had a negative net margin of 5.43% and a positive return on equity of 19.86%. The company’s quarterly revenue was down 10.5% compared to the same quarter last year. During the same quarter last year, the company posted $2.97 EPS.

Here are the key takeaways from Owens Corning’s conference call:

• Owens Corning delivered resilient profitability with $369 million of adjusted EBITDA in Q1 (16% margin); management is guiding to an enterprise EBITDA margin of roughly 20%–22% in Q2 and expects Roofing margins in the low-30% range.
• The company is capturing meaningful cost savings and portfolio cash — on track for ~$135 million run-rate enterprise synergies (exceeding its $125M target), pursuing an additional $75 million of structural COGS improvements, and completed the sale of Glass Reinforcements for ~$280 million plus $50–70M in excess alloy proceeds.
• Cash flow was pressured in Q1 with a net free cash flow outflow of $387 million due to seasonal working capital and elevated capex (Q1 capex $210 million; FY capex expected ~$800 million), although leverage remains mid-target at 2.5x and liquidity was $1.8 billion.
• Near-term margin risk from inflation and supply-costs — management estimates ~$60 million of incremental cost impact in Q2 (roughly half to Roofing), and says recent price increases will be realized with a lag while a potential ~$50 million tariff refund remains timing-uncertain and is excluded from guidance.

Owens Corning Stock Performance

Shares of NYSE:OC traded up $0.05 on Friday, hitting $121.86. The company had a trading volume of 342,219 shares, compared to its average volume of 1,386,380. Owens Corning has a 1-year low of $97.53 and a 1-year high of $159.42. The stock has a market cap of $9.80 billion, a price-to-earnings ratio of -18.44, a P/E/G ratio of 2.08 and a beta of 1.35. The stock has a 50 day moving average price of $113.83 and a 200 day moving average price of $117.00. The company has a current ratio of 1.24, a quick ratio of 0.70 and a debt-to-equity ratio of 1.27.

Hedge Funds Weigh In On Owens Corning

Institutional investors and hedge funds have recently modified their holdings of the stock. Itau Unibanco Holding S.A. acquired a new position in shares of Owens Corning in the fourth quarter valued at about $29,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Owens Corning in the third quarter valued at about $42,000. Global Retirement Partners LLC grew its stake in shares of Owens Corning by 1,173.3% in the fourth quarter. Global Retirement Partners LLC now owns 382 shares of the construction company’s stock valued at $43,000 after acquiring an additional 352 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of Owens Corning in the fourth quarter valued at about $44,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Owens Corning in the third quarter valued at about $56,000. 88.40% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

OC has been the topic of several recent analyst reports. Royal Bank Of Canada lifted their price objective on shares of Owens Corning from $134.00 to $148.00 and gave the stock an “outperform” rating in a research note on Thursday. Citigroup cut their price target on shares of Owens Corning from $137.00 to $135.00 and set a “buy” rating on the stock in a research note on Thursday, January 8th. The Goldman Sachs Group lifted their price target on shares of Owens Corning from $125.00 to $141.00 and gave the company a “neutral” rating in a research note on Thursday. Argus upgraded shares of Owens Corning to a “strong-buy” rating in a report on Wednesday, January 14th. Finally, Wells Fargo & Company boosted their target price on shares of Owens Corning from $135.00 to $150.00 and gave the stock an “overweight” rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Owens Corning currently has an average rating of “Moderate Buy” and an average price target of $143.27.

Owens Corning Company Profile

Owens Corning is a global leader in composite materials and building products, with a primary focus on insulation, roofing, and fiberglass composites. The company serves professional contractors, builders and industrial manufacturers by providing solutions designed to improve energy efficiency, structural performance and durability. Its products are used in residential, commercial, and industrial applications worldwide.

The company’s core product lines include fiberglass insulation for thermal and acoustic comfort, roofing shingles and underlayment systems engineered for weather protection, and advanced composite materials for markets such as wind energy, automotive, marine and infrastructure.